The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Glastonbury may extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Glastonbury lease extension. Postponing that expense now simply escalates the price you will eventually be required to pay for a lease extension.
Leasehold properties in Glastonbury with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Glastonbury can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Glastonbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Max owned a studio apartment in Glastonbury on the market with a lease of just over sixty years outstanding. Max on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Max to exercise his statutory right. Max obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
Last Winter we were approach by Mr and Mrs. F Roberts , who acquired a one bedroom apartment in Glastonbury in August 1997. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Similar properties in Glastonbury with an extended lease were worth £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish in 2099. Having 74 years unexpired we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Last Christmas we were phoned by Mr and Mrs. S Jones , who acquired a ground floor apartment in Glastonbury in April 2007. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical homes in Glastonbury with 100 year plus lease were worth £243,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease ended on 25 March 2088. Given that there were 63 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus professional charges.